Light olefins
Overview
The global light olefins market is made up of ethylene and propylene monomers. These product markets can be affected by a great many factors.
Ethylene is the most widely used commodity chemical and is produced globally in all major regions. It is converted into many products used in daily life like plastic packaging, durable goods, hygiene products and other consumer items. The ethylene market is driven primarily by regions of low production cost and regions of high demand growth. Polyethylene, ethylene’s largest derivative, represents about 65pc of global ethylene demand. Anyone involved in the ethylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Propylene is the second most widely used commodity chemical and is produced globally in all major regions. Propylene is a volatile commodity because of its predominantly co-product nature and unpredictable supply, but recently the industry has been trending to more on-purpose production. It is converted into many products used in daily life like plastic packaging, durable goods, automotive products, and woven fabrics. Polypropylene, propylene ’s largest derivative, represents about 70pc of global propylene demand. Anyone involved in the propylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Our light olefins experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global market.
Latest light olefins news
Browse the latest market moving news on the global light olefins industry.
India’s PE, PP imports dip in March
India’s PE, PP imports dip in March
Mumbai, 25 May (Argus) — India's imports of polyethylene (PE) and polypropylene (PP) dropped in March as supplies from the Middle East fell sharply due to logistics challenges arising from the US-Iran war. India's PE imports fell by 10pc on the year and by 28pc on the month to 136,964t in March, according to customs data from Global Trade Tracker. PP imports slipped by 1.1pc on the year and by 17pc on the month to 140,661t. Shipments from the Middle East — which account for 62pc of India's PE imports and 51pc of PP — fell significantly. The closure of the strait of Hormuz has forced suppliers to reassess logistics, and use alternative routes such as Saudi Arabia's west coast ports of Jeddah and Yanbu, as well as the UAE's Fujairah port, and Oman's Duqm, Sohar and Salalah ports to export cargoes. India's PP imports from the UAE dropped by 49pc on the year to 18,199t in March. PE imports from the UAE fell by over 40pc to 24,759t. Saudi-origin PE cargoes to India declined by 24pc on the year to 18,808t. Saudi-origin PP inflows rose by 27pc on the year to 20,678t but were down by 55pc from February. Steep prices and uncertainty about delivery timings have led some buyers to look to other regions, including China, to meet the shortfall. India imported 17,207t of PP from China in March, almost doubling from 9,239t in March 2025. Chinese polymer exports to India hit an all-time high in April, according to China's customs data. India's overall drop in imports also came at a time when the country's domestic producers cut production after the Indian government asked refiners to divert propane, butene and propylene toward cooking gas production, limiting feedstock availability for petrochemicals. The government cut import duties on petrochemical products to zero in April because of the supply uncertainty. The import duty waiver expires on 30 June. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japan’s cracker rates fall to a historic low again
Japan’s cracker rates fall to a historic low again
Tokyo, 22 May (Argus) — Average operating rates of Japan's naphtha-fed ethylene crackers fell to 67.3pc in April, reaching a record low for the second consecutive month, according to the Japan Petrochemical Industry Association (JPCA). Persistent naphtha supply disruption due to the US-Iran war in the Middle East, along with multiple planned turnarounds of the crackers, have pressured operating rates. The April operating rates dropped by 11.3 percentage points from the same month in 2025, and by 1.5 percentage points from March, when rates hit a record low of 68.8pc. Four crackers were shut for regular maintenance in April, compared to none a year earlier. Ethylene output in April declined by 37pc on the year to 283,500t but rose by 4pc from March. Production of major polymers — low-density polyethylene (LDPE) and polypropylene (PP) — also fell by 27pc to 79,100t and by 24pc to 146,400t, respectively, from a year earlier. Polyvinyl chloride (PVC) output dropped by 24pc on the year to 93,200t. But production of LDPE, PP, and PVC in April recovered from March levels, as domestic petrochemical producers have attempted to diversify feedstock naphtha import sources beyond the Middle East, according to JPCA. LDPE and PP output rose by 47pc and 17pc in April on the month, while PVC production increased by 4.3pc on the month. JPCA expects naphtha purchases from countries outside the Middle East to rapidly increase in May. Meanwhile, Japan has secured polyethylene and PP inventories that could cover domestic demand for more than three months, and naphtha production at domestic refineries has helped ease the impact of supply disruptions, JPCA added. Japan relies heavily on the Middle East for its naphtha supply. The country imported 583,609t of naphtha from the UAE, Kuwait, Qatar, and Bahrain in March, accounting for 73pc of total imports of 798,523t imports in March, according to the latest data from finance ministry. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US housing starts drop in April
US housing starts drop in April
Houston, 21 May (Argus) — US housing starts fell in April, dropping from a high in March, but remained above year-prior levels on increased multi-family unit construction, US Census Bureau data show. US housing starts fell to a seasonally-adjusted annual rate of 1.465mn units in April, down by 2.8pc from March. Starts in March were the highest level since December 2024 . Starts in April, though, rose by 4.6pc from the prior year. Construction activity remains driven by multi-family units. Starts for projects of five or more units increased by 23pc in April to an annual rate of 529,000 units compared to the same month last year. Single-family starts fell by 2.4pc annually in the same period, dropping to an annualized rate of 930,000 units. Permit issuances for new houses fell by 0.2pc from the same time a year prior to a seasonally-adjusted annual rate of 1.442mn units. Permits for multi-family units grew by about 12pc year over year to 141,000 units. Polyvinyl chloride (PVC) market participants in the housing sector have reported mostly unchanged domestic demand in the second quarter for PVC building products, with producers and builders focused on navigating an uncertain cost environment as the conflict with Iran drags on. The diverging momentum for single-family and multifamily construction reflects the rising inflation and higher mortgage rates that are making it more challenging for consumers to buy new homes. The US Consumer Price Index (CPI) rose by 3.8pc in April year over year and was above 3.3pc in March, well in excess of the US Federal Reserve's 2pc inflation target. Average US mortgage rates climbed to 6.56pc in the week ended 15 May, extending an upward trend that began in late February. The Federal Reserve is unlikely to change its target interest rate at its June meeting, with rates futures traders forecasting one interest rate hike by the end of this year, data from CME FedWatch show. Home builders had hoped for a series of rate cuts in 2026 that would have potentially induced demand for new housing. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India’s Gail restarts Pata petchem complex
India’s Gail restarts Pata petchem complex
Mumbai, 19 May (Argus) — India's state-owned energy firm Gail has resumed petrochemicals production at its Pata facility in the northern state of Uttar Pradesh on 19 May, following a shutdown that lasted over two months, a source familiar with the matter told Argus . The plant has been shut since 9 March after a government order directed gas distributors to start full or partial curtailment of gas supplies to petrochemical plants, including ONGC Petro Additions (Opal), Gail Pata and Reliance's oil-to-chemicals units. The Pata complex will likely run at a reduced operating rate this week, another source told Argus , although the exact run rate could not be confirmed. It was not immediately clear if the New Delhi issued a fresh order that allowed for a phased restart of the petrochemicals project. India's Ministry of Petroleum and Natural Gas and Gail did not immediately respond to Argus requests for comment. The status of the other plants could also not be determined at the time of writing. Gail's Pata facility has two steam crackers with a combined ethylene production capacity of 900,000 t/yr. It also has a linear low-density polyethylene/high-density polyethylene (LLDPE/HDPE) swing unit with a capacity of 610,000 t/yr and a separate HDPE capacity of 200,000 t/yr. The plant sources feedstock through a pipeline from Indian state-owned upstream firm ONGC's Hazira plant on the west coast of Gujarat. The restart of the plant would bolster domestic supply, partially offsetting reduced availability from Middle Eastern producers, which account for 62pc of India's PE imports, data from Global Trade Tracker show. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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